Wednesday, September 1, 2010

The U.S. Path to Collapse

(snippet)
Rising gold and silver prices indicate that the U.S. is headed for an explosion in budget deficits that will rise far beyond what it can pay for through borrowing. Leading Chinese economists are now calling Japanese debt less risky than U.S. debt and with the Japanese savings rate in decline, the U.S. will soon have nobody left to borrow from. The only option will be monetization and already the Federal Reserve is getting ready to buy $10 billion to $30 billion per month in U.S. treasuries to keep its balance sheet at inflated levels.

There are now 50 million Americans on Medicaid, with annual Medicaid costs rising 36% over the past two years to $273 billion. The recently enacted health care bill will add 16 million more Americans to Medicaid beginning in 2014, but the U.S. government will likely go bust by then. It is impossible to have an economic recovery when jobless benefits are encouraging Americans to stay unemployed. U.S. unemployment insurance spending has nearly quadrupled since 2007 to $160 billion annually. Even food stamp costs have surged 80% over the past two years to $70 billion annually.

Once Americans get used to receiving and relying on government entitlement programs, it is hard to wean them off of them. NIA has been hearing reports from members with friends who say they will only "come out of retirement" if they can find a job that pays $25 per hour or more, because with anything less it wouldn't be worth losing their jobless and food stamp benefits. Americans expect to receive their jobless benefits forever and we are sure Obama will continue to extend them leading up to the 2012 election.

There are now countless warning signs all around us on a daily basis that the U.S. is headed for a complete societal collapse. NIA received an overwhelming response from its members when we asked you to submit any signs you see that a societal collapse is near. The response we received was so strong that we are now beginning to produce a documentary about America's upcoming collapse of society. The documentary will be over an hour long and we are hoping to release it by the end of October. It will go beyond the economic facts and statistics that were discussed in 'Meltup' and help expose the upcoming collapse from a real life perspective. NIA believes this documentary will appeal to a very mainstream audience and help open up the world's eyes to the truth about the path this country is on. 


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11 comments:

  1. I'm thinking CLASS WARFARE. If your RICH you might want to leave the planet because this might not end well for you. GOOD LUCK

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  2. the U.S. will soon have nobody left to borrow from. The only option will be monetization and already the Federal Reserve is getting ready to buy $10 billion to $30 billion per month in U.S. treasuries to keep its balance sheet at inflated levels.

    From Gonzalo, this has already happened...
    --- start ---
    But who is buying all this new Federal government debt? Why, that’s very simple: The Federal Reserve.

    The reason that the Federal government could go into the aforementioned massive spending spree was precisely because of the Federal Reserve’s bail-out: The Fed created money out of thin air (as is their power), in order to buy Toxic Assets from the Too Big To Fail banks. The banks, in turn, took this cash and bought Treasuries—which financed the Federal government’s deficit.

    This is what I call Stealth Monetization: Unlike in some banana republics, which dispense with the niceties and simply turn on the printing presses whenever they need more money to spend, the U.S. Federal government and the U.S. Federal Reserve got creative, and used the TBTF banks to essentially hide the monetization of the fiscal debt in plain sight.
    --- end ---

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  3. I agree with what 8:40 said. The rich had better watch out as these are crazy times!

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  4. The rich arent all stupid they can see the writing on the wall.
    Many are preparing bolt holes just as many ordinary people are preparing survival kits.
    So far ,the rich have done very well out of the economic crisis, after all they had their losses socialised and refunds of capital from the Fed.
    But first they will continue to loot the remaining assets of the middle class from behind the protection of their gated communities.
    So they can leave with the loot and property titles to houses in the US that they might buy to rent for cents in the dollar ofF the nice Fed. Their stockbrokers and financial agents can pick up any dividends paid on their treasury bonds from the taxpayers .
    Electronic cash transfers are fine!

    Some are even passported dual citizens already .Beleive it or not, some even buy or have already transferred nice portable gold to safe havens ,where they can use it re-establish themselves elsewhere anywhere from China ,to Isreal or even in paraguay .Maybe a yaght cruise to empty out their offshore funds in the Bahamas?
    The Debt Peons will be able to wander around with pitchforks ,if it makes them feel good,they can pick on mexicans all they like . The rich will find it all very entertaining watching on satelite T.V.

    Watching the "cattle" fight amongst themselves.

    The important thing is not the revenge and the pitchforks dreams ,but finding a way to rebuild an economy that serves the Americans not the attempt at rebuilding of the old failed elites system .

    Fool me once!

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  5. 8.40 said:
    "I'm thinking CLASS WARFARE."
    So are the authors of this article, typical of the Austrian Economic School of economics.
    Gold fetishists who wish to re-enthrone gold and the golden calf of usury as the true religion not the false god fiat paper.
    But moses will begat Issac ,or his brother Usury ,whether the currency is gold or paper in the same old way.
    We are in a debt crisis of capitalism that reached its limits but
    They pretend that the problem is fiat paper at the Fed ,big government and the lazy poor.
    As usual they blame a threatening economic collapse on the future cost of people getting unemployment or food stamp entitlements.
    They do not point out the cause of the economic Crisis the credit merchant banksters and capitalists on wall St creating a de-industrialized Ponzi casino capitalism running on credit .
    The real creators of the Crisis.
    And that the real reason the Treasury finances are strained is not the growing cost of food stamps but that it has already been looted by deficit spending for wars and propping up and bailing out the ponzi.
    They pretend that jobs are freely available but people are suddenly too fat and lazy ,stuffed with food stamp luxury ,to be prepared to work.

    So now they demand their variety of class war against the 'entitlements" of the people but do not mention class war against the looter class.
    None of the criminals of a corrupt system get called to account here just calls for class war ahgainst the entitlements of poorer victims of the system .

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  6. 2:02 good point.

    WE really need to stop fixating on rage and hatred, while it is easy to understand why we may feel that way it is not going to help anything.

    Irate people don't think, literally their thoughts are absent and they are driven by impulse. People in this state of mind could very likely kill innocent people thinking they are the cause of the problems.

    How many people who have grown to hate the Capitalist System would want to kill Bill Gates if they saw him when walking around when this happens and if he stayed here? Yet Bill Gates has helped more people than anyone on this planet. 26 billion dollars of his has gone to charity, not to mention we each use Microsoft.

    But some won't be concerned about that - he's rich, mean, and selfish... (contrary)

    What is mean, selfish, and way too rich for its own good is the government, not the capitalist guys who actually donate their money voluntarily to help people (not all). The government officials today, little Obama types, take your money, they do NOT give it to the poor... they just keep it for themselves. You Marxists are a bit clueless out there.

    Are there problems with the Capitalist System? These are poisons that have entered it throughout time and having been ulcerated by idiots that meddled around with it, not the basis itself. Banks, Credit, Academia, Unions, Brokers, Inspectors, these kinds of things are the poison that's choking us from the capitalist side. The Socialist poisons are various people in government who are like neurotic children that can't keep to themselves and insist on pushing things through that further suffocates people.

    If people are going to be in rage about everything then they are as useless as those that are too scared to see reality. We need thinkers to help when the time comes, not fools wanting to murder people or people indulging in liquor to drown their pain.

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  7. Every time someone bashes social programs like Medicare, Social Security, food stamps, etc., they never have an alternative suggestion on how to keep people from starving or dying. These are the same people who are rah-rah for war, but they're always sending off somebody else's kid to die or be wounded--and I bet they bitch about the cost of taking care of the wounded soldiers afterward.

    Sorry, but I am mad and plan to stay that way...although I'm not about to run around shooting politicians and CEOs (as much as I'd like to). But this is class warfare and we have to do something about it.

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  8. 6:38 this is a chicken & egg question. Without the massive tax sucking social programs with bloated administration and inefficiency the system would be in better shape. Employers would have lower overhead and could pay better wages, taxes would be lower and employees would have more usable income and could offer charitable contributions to local care groups.

    All these massive federal programs do is create a greedy fat slob middleman. I give all I can now to local charity. Without the heavy tax burden I would give much more and would be assured it would actually help the intended.

    Fire the tens of thousands blood sucking federal pensioned administrators and let charity return to local churches and non-profit aid groups. That's my alternate suggestion.

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  9. Anyone noticed all the we will buy your gold ads on the television the last year or two. Seems to me the people with cash are buying up all the gold. Better to have gold than worthless paper money isn't it.

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  10. Your assumptions of reform are based on the assumption that America is a real productive profitable economy of the old industrial type with physical wealth to share around more fairly, not as it is ,a giant insolvent ponzi whose standard of living for its people and banksters was based on its ability to exchange services in order to live on credit a transfer of wealth to America under a dollar hegemony system.
    At the center of that ,attracting investment , in a dud bond property bubble scam.
    That source of credit is drying up.
    Profits in the economy now are still scams based on the Fed passing out free money ‘stimulus”
    Pre crisis the unproductive for capital American workers in total were creating no real profits for capital and were consuming more wealth than they created , but they could get cheap labor produced commodities cheaply .High waged .Government workers were part of that Ponzi system .
    Capital does not want to invest to pay high wages in such an unprofitable services economy financed on credit not by internalp value creation.

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  11. Yet Bill Gates has helped more people than anyone on this planet. 26 billion dollars of his has gone to charity, not to mention we each use Microsoft.

    But some won't be concerned about that - he's rich, mean, and selfish... (contrary)

    Yes, nothing like a monopoly to get the billions rolling in.
    The benificiary having so much loot can then even set up tax efficient charities and foundations in order to become a capitalist hero!
    Nice super Mac-Mansion too !

    Some people may even slobber/ drool all over their masters boots in gratitude.

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